maximizing executive team performance · • transparent communication of goals and achievements...

Maximizing Executive Team Performance – Dr. Uwe Brunk – June 2009 Slide 1

Maximizing Executive Team Performance

Dr. Uwe Brunk

Head of BL Agro & Specialty Chemicals



Agenda

• Target markets and target customers

• Key success factors

• Alignment of an organisation to meet market requirements

• Case study: Saltigo

• Key learnings and profile for team members

• Resume


Maximizing Executive Team Performance1. Target markets and target customers

• Custom manufacturing & custom synthesis

• Innovative industries, mainly pharma & agro

• Large companies in western world

• No own products, no product-IP

• One product for one customer

• High capital intensity

• High risks, high rewards ?


Maximizing Executive Team Performance2. Key success factors

• Sound understanding of its customers‘ individual needs

• Good relationship to customers / reactivity / openness

• Long-term track record

• Strong project management

• Highly skilled people

• Highly flexible assets

• Technical strengths, continuously improving

• Broad process development / process improvement expertise

• Highly efficient waste management

• Financial stability


Maximizing Executive Team Performance3. Alignment of an organisation to meet market requirements

3.1 General

• Organisational structure – market driven

• Specific markets have specific needs

• Multi-purpose-facilities in one hand: asset management

• All key service functions in-house, i.e. procurement, human resources, engineering department

• Maximum outsourcing of non-core service functions

• Matrix organisation for project teams

• Long-term assignments



3.2 People skills

• Experienced people for each specific category

• Broad experience in this specific market

• Strong financial and chemical understanding

• Good communicator

• Teamplayer

• Willingness to create

• Openness for change



3.3 Performance metrics

• Long-term objectives / short-term incentives

• Annual financial objectives (EBITDA, DSI, DSO, Capex, ROCE, net cash flow)

• Combination of company profitability and customer value

• Personal objectives interlinked – no silo mentality

• Set of KPI‘s for each segment (i.e. Right first time, OEE, … )

• Lessons learned mentality

• Regular benchmarking

• Transparent communication of goals and achievements

• Goals: continuous improvement – become the “gold standard” of the industry


Maximizing Executive Team Performance4. Case Study

Mayor role

Market-oriented custom manufacturing service provider

External fine chemicals partner for customers, including Bayer Group

Synthetic and process engineeringcompetence center within the Bayer Group

Business Unit Fine Chemicals of Bayer Chemicals AG

Until September 2004

Business Unit FineChemicals of LANXESS

From September 2004

From 2nd quarter 2006

Saltigo –service company of LANXESS Group

Creation of Saltigo in 2006



Chem Park – Leverkusen siteFine chemical production is concentrated on the Leverkusen site (10 plants)



Agro

Specialty Chemicals

Pharma

SaltigoFull service provider for custom manufacturing



Competencies of Saltigo

� Customized synthesis

� Customized process development

� Customized manufacturing

� Customized services

LabIdea MarketPilotation ProductionProcessdevelopment

From the Idea to the Market



Top position in pure custom manufacturing (source: Arthur D. Little)

– Revenue of about 400 € Million

– Agro: leader in agro customer manufacturing (incl. active ingredients)

– Specialty Chemicals: strong position in custom manufacturing for Cosmetics, Polymer, F&F and Electronics industry

– Pharma: pure custom manufacturer serving established and emerging pharmaceutical companies with APIs, RIs and RSMs

Saltigo – A Distinct Player in Custom Manufacturing


Maximizing Executive Team Performance5. Key learnings and profile for team members

5.1 Combination of the strengths of a large conglomerate and an entrepreneurial company

• Well established processes and discipline

• Continuous improvement and regular benchmarking

• People with broad range of experience

• Good established tracking systems

• Extensive engineering capabilities

• Teamwork (one goal for all)

• People understanding the specific needs of each customer

• Customer focus in all parts of the organisation

• Economically viable solutions

• Fast adaptability to changing market conditions

• Nimblicity



5.2 Profile for your team

• Team player

• Experienced people for each part of the organisation

• Broad experience in this specific market

• Broad knowledge (financials and chemistry)

• Good communicator / good motivators

• Mix of people with different horizons of experience (different company culture, inter-cultural experience)

• Mix of young and experienced people

• Strong customer focus

• Willingness to create and change

• Experience in creating economically viable solutions

• Identification with the company



5.3 Alignment

• Take time to create a team

• Be a front runner in customer orientation

• Develop your strategy together

• Let them exchange their experiences

• Bring them together with customers at various levels

• Let them broaden their horizons by visits to suppliers

• Regular transparent communication

• Long-term assignment

• Set long-term goals and reward them for short-term achievements



5.4 Behaviour in challenging times

• Keep your staff informed of your plan, the progress being made, especially when major changes are made

• Keep your promise

• Give key people a perspective during transition

• Increase internationality in your team

• Inform customers upfront of planned changes and keep them regularly informed about progress

• Keep your good track record


Maximizing Executive Team Performance6. Resume

• Clear strategy and its regular communication

• Focus on customers’ needs

• Continuous improvements

• Sense for viable solutions

• A great team

• A good track record

• Partnership with customers in various industries

• Keep your promise

• Never stop changing

… and you will be also successful in challenging times !

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